Is Dogecoin Getting Ready for a New Price Increase?

In recent days, Dogecoin ($DOGE) - a cryptocurrency famous for being a "meme coin" - has shown positive signs, attracting the attention of investors. Specifically, the number of new investors in DOGE has significantly increased, raising the possibility that this cryptocurrency could experience a strong price increase similar to the period from September 23 to December 12 before. Investor Growth: Positive Signal During the period from 23/9 to 12/12, the price of Dogecoin increased from $0.10 to $0.47, a significant increase. However, afterwards, the number of investors decreased from 7.14 million to 6.80 million, causing the DOGE price to drop from $0.47 to $0.39. This decline is largely attributed to investors taking profit after the strong price increase. According to the latest data from the Santiment on-chain analysis platform, there are signs of positive changes. In the past 10 days, over 60,000 new investors have joined Dogecoin, bringing the total number of investors to 6.68 million. This is a positive signal, indicating that Dogecoin is increasingly attracting attention from individual investors, especially in the context of continued strong activity by cryptocurrency whales with DOGE. MVRV Ratio: Signs of Bullish Trend Support The increase in the number of Dogecoin investors is not the only signal of the upward trend. The Market Value/Realized Value (MVRV) ratio is also supporting positive prospects for DOGE. MVRV is an index that measures the difference between the current market value and the average value that investors have purchased an asset. This index helps determine whether an asset is overpriced or undervalued. Currently, Dogecoin's 30-day MVRV ratio has shifted from negative territory to 0.69%. In previous conversions, when MVRV fell into this state, the price of DOGE surged strongly. If history repeats itself, Dogecoin could once again experience a parabolic price increase, pushing the value of the coin above the $0.42 mark. Impact of 'whale' Dogecoin Another factor contributing to the expectation for Dogecoin is the active involvement of cryptocurrency 'whales'. Large investors tend to accumulate DOGE when the price is low, and these actions often trigger price increases in the market. According to observation, the increasing number of wallets holding Dogecoin, especially from new investors and "whales", is contributing to the sustainable price increase. Expectation and risk Despite many positive signals, investors also need to be cautious. Rapid price increases are often accompanied by high volatility. To optimize profits, investors should pay attention to indicators such as MVRV, trading volume, as well as actions from "whales". In the near future, if Dogecoin surpasses the $0.42 mark, this currency may strengthen its position as one of the most prominent and attractive cryptocurrencies in the market. Conclusion With the increasing number of investors, positive signals from the MVRV index, and the strong activity of "whales," Dogecoin is showing potential for recovery and breakthrough in the near future. If these trends continue, the Dogecoin community may expect an impressive price increase as before. However, like any cryptocurrency investment, risk management is always necessary. DYOR! #Write2Win #Write&Earn $DOGE {spot}(DOGEUSDT)